As an investment choice, real estate provides one of the most lucrative options for those looking for long-term, stable investment returns. Unlike stocks or bonds, the real estate market isn’t as prone to wild minute-to-minute fluctuations, and real estate can offer more stable and better long-term returns. Many people may wonder why they should invest in real estate through Crowdfunding rather than traditional real estate investment vehicles.
There are obviously arguments for both but we are going to focus on 8 main reasons why Real Estate Crowdfunding is really a great alternative to traditional real estate investment:
Traditionally the real estate market has seemed like something of a closed book, inaccessible to non-professionals. This was down to high costs, admin issues, and geography-based constraints. With advancing technology and the development of the internet, remote real estate investing has opened up new opportunities for those looking to invest with lower amounts of capital.
The real estate investment market is now far easier to access because real estate crowdfunding platforms are very easy to use. Property investment was previously notorious for involving lengthy paperwork and maze-like legislation, but real estate crowdfunding platforms such as Bricksave now handle all of this for you, meaning that the investor only needs to worry about actually investing money and enjoying their returns.
Anyone with a computer can now invest in real estate and earn returns in the world's best currencies, that are likely to be higher than what they would get with a bank.
2. Lower capital requirements
Before crowdfunding, investing in a property required large amounts of capital to cover the upfront costs. This is due to the fact that the financial burden was entirely on you, you're the only one investing, so you have to cover all the expenses.
The only other viable option was REITs (Real Estate Investment Trusts), but these were not ideal because the investor had little control over what properties were chosen for investment and little to no knowledge about the management of the properties. The collectivist backbone of Real Estate Crowdfunding has removed these high costs, and investors can now invest just a few thousand dollars into a property.
Currently estimated as a 2.6 billion dollar market worldwide, the real estate crowdfunding market has enabled non-accredited as well as non-professional investors to get involved without the need for large amounts of capital to get started. Investors can now invest relatively small amounts (from $2,500 with Bricksave) in properties located in any continent, any city. Real estate Crowdfunding is democratizing real estate investment.